TRENTON, NJ – New Jersey residents are clearly rejecting Governor Murphy’s gas car ban and one industry expert predicts the state will turn into Havanna, Cuba, the used car capital of the world.
Michael Karlovich, representing PBF Energy, voiced strong opposition to Governor Phil Murphy’s proposed ban on gas-powered cars at a recent New Jersey Department of Environmental Protection (DEP) public hearing. Karlovich highlighted that the ban could jeopardize the state’s reliable fuel supply, as well as the livelihoods of more than 600 employees supported by PBF Energy in New Jersey.
PBF Energy, headquartered in Parsippany, is the largest remaining refining company in the Northeast, making up about 40% of the regional refining capacity. Its subsidiaries operate a refinery and two product terminals in Paulsboro, New Jersey, providing fuels, lubricants, and asphalt to the region.
Karlovich stated that neither California nor New Jersey has conducted studies to assess the feasibility of such a ban, calling it an “unattainable social experiment.” According to a DEP representative, as of the end of 2022, only about 91,000 electric vehicles (EVs) were registered in the state, making up just 6.3% of all registered cars.
Karlovich also pointed out the financial burden the mandate would place on New Jersey residents, particularly those who can least afford an EV or live in cities where charging is difficult. He cited the example of the 2024 Rivian EV, which starts at $75,000, well above the average cost of new or used vehicles.
He warned that this proposed ban could have broader economic implications, potentially leading PBF to halt capital projects to avoid funding “stranded assets.” Karlovich also noted that PBF had to shut down process units at the Paulsboro Refinery and lay off employees due to decreased demand and escalating regulatory costs.
The PBF representative closed by highlighting that the company has made significant investments in low-carbon energy solutions. He mentioned the renewable diesel plant they built in Louisiana and their involvement in a plan to develop a hydrogen hub for the South Jersey, Pennsylvania, and Delaware region.
Karlovich concluded that Governor Murphy’s proposal is at odds with the needs and wishes of the majority of New Jersey residents, labeling it as another “extreme social policy” modeled after California. He urged reconsideration of the proposed gas car ban, citing both economic and practical concerns.